EUR/USD: The attempt of yesterday’s rally failed, the trend remains bearish


© O Financista. The trend remains bearish on EUR/USD

Investing.com – The trend remains bearish on the EUR/USD pair this Friday morning, after attempting to rise from yesterday which was quickly stopped in the face of blockages techniques.

Recall that 3 statistics US disappointing had weighed on the Dollar, with a fall of -1.2% in retail sales for the month of December, the largest decline since about 10 years.

The index of producer prices for the month of January, below expectations, and the inscriptions weekly unemployment US above the consensus had also played a role in the decline of the Dollar.

An important area of resistance blocks the upward

This had allowed the EUR/USD pair attempt to climb back above the psychological threshold of 1.13 yesterday, however, the rebound did not last, the EUR/USD was unable to sustain above the resistance zone consisting of the trend line is downward visible from the top of Tuesday, the moving average 100 hours (1.1293), and the psychological threshold of 1.13.

In the case of breakage confirmed at the top of the area described above, and further up, the next upside potential will be located at 1.1340, 1.1350 and 1.14.

For the reduction, the area of 1.1250, which corresponds to the hollow annual 2019, and 1.1214, the low of last year, will be the first two carriers to take into account.

Macroeconomic factors potentially influential on EUR/USD this Friday

Finally, it should be noted that the economic calendar of the day will remain pretty busy this afternoon in the United States, with the indices of the import price, and export of the month of January, and the index Empire State at 14: 30, then industrial production at 15: 15, and the consumer confidence index from the University of Michigan (16h.

It will also closely monitor any declaration of potential following a meeting between negotiators for US Mnuchin and Lighthizer and chinese president Xi. The best-case scenario would be the announcement of an extension of the truce of trade between the two countries, which could support the Dollar and lead to a decline of EUR/USD.

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